Close
RNS Number : 6773B
Dragon Oil PLC
22 February 2011
 



FOR IMMEDIATE RELEASE

22 February 2011

 

 

Dragon Oil plc advises that the following amendment has been made to the "Dividend policy" paragraph in the "2010 Full Year Results"announcement released at 07:00 today under RNS Number 5938B.

 

"The exchange rate for the pound sterling or euro amounts payable will be determined by reference to the exchange rates applicable to the US dollar on the closest practicable date to the dividend payment date. The closing date for receipt of currency elections is 3 May 2011." 

 

This text replaces:

 

"The exchange rate for the pound sterling or euro amounts payable will be determined by reference to the exchange rates applicable to the US dollar on the record date, 3 May 2011." 

 

All other details remain unchanged.

 

The full amended text is shown below.

 

 

 
DRAGON OIL PLC
(the "Company" or together with its subsidiaries the "Group" or "Dragon Oil")

 

2010 Full Year Results

 

Dragon Oil (Ticker: DGO), an international oil and gas exploration and production company, today announces its preliminary results for the year ended 31 December 2010.  These preliminary results are prepared in accordance with International Financial Reporting Standards.

 

Key Financial Highlights

 


2010

2009

Change

(US$ millions, unless stated)




Revenue

780.4

623.5

25%

Operating Profit

487.7

314.4

55%

Profit for the year

386.1

259.0

49%

Basic EPS (US cents)

74.9

50.3

49%

Final dividend per share (US cents)

14.0

-

-

Cash balance

1,336.6

1,137.6

17%

Debt

0.0

0.0

nil

 

Key Corporate and Operational Highlights

 

Corporate and Commercial Developments

§ The Board recommends the payment of a full-year maiden dividend of US cents 14 per share for 2010;

§ Year-end reserves upgraded to 639 million barrels of oil and condensate and 1.6 TCF of gas reserves; remaining gas resources of 1.4 TCF; and

§ Marketing arrangements via Baku, Azerbaijan were secured and extended up to December 2011.

 

Significant Drilling Programme

§ 11 wells completed during 2010 and the first week of January 2011;

§ Average gross daily rate of production rose 5.5% to 47,211 bopd;

§ Production exit rate for 2010 reached 57,013 bopd (2009: 49,698);

§ New build Super M2 jack-up rig ordered from Yantai Raffles Offshore Ltd with expected delivery in Q4 2011; and

§ Agreement reached in principle for a two-year contract extension for the use of the Iran Khazar rig.

 

Major Infrastructure Upgrade Completed:

§ 30-inch 40 km trunkline from Block 2 to the CPF;

§ Three associated in-field pipelines in the Dzheitune (Lam) Western Area; and

§ Phase 2 expansion of the CPF.

 

New Infrastructure Under Construction and Upgrade:

§ Dzheitune (Lam) C platform;

§ Dzhygalybeg (Zhdanov) A platform with an accommodation facility;

§ Dzheitune (Lam) Block 1 gathering station;

§ 100-tonne floating crane vessel;

§ Upgrade of three Dzheitune (Lam) and two Dzhygalybeg (Zhdanov) platforms with additional slots.

 

Encouraging Outlook for 2011-13

§ Plans to complete up to 11 wells in 2011 and up to 40 development wells in total, including five appraisal wells, between 2011-13;

§ Target annual production growth of 10-15% both in 2011 and on average per annum for 2011-13;

§ US$600-700 million estimated capital expenditure for oil infrastructure in 2011-13, including US$250 million for 2011 projects;

§ Progress gas monetisation; and

§ Deliver on the portfolio diversification objective.

 

Dr Abdul Jaleel Al Khalifa, CEO, commented:

 

"Dragon Oil enjoyed a record year in terms of revenues generated and the number of wells drilled and completed as well as awarding a number of major contracts for infrastructure projects. We completed a major upgrade to the infrastructure base, thus eliminating the bottlenecks, which constrained production growth last year. This allowed us to achieve a robust exit rate of over 57,000 bopd, which we have successfully maintained throughout January 2011. We have a strong platform to deliver on the upper end of our production forecast this year and with more capital expenditure to come over the next two to three years to support our drilling campaign, we are paving the way for strong production growth in the future.

 

"We remain focused on three strategic areas: the accelerated development of the Cheleken Contract Area, gas monetisation opportunities and value-enhancing acquisitions. We have a focused and experienced management team as well as a commitment throughout the organisation to deliver on our objectives.

 

"Last year we invested significantly, and will continue to do so in the future, in the training and development of our Turkmen employees, whom we believe to be the key to our future in-country success. In particular, we completed the new Centre of Excellence in Hazar, Turkmenistan, which will offer training courses to our employees as well as a broader curriculum to the local community. We consider that our team approach, which has served Dragon Oil so well in recent years, can continue to deliver outstanding results through the trusted partnership with our employees, the government of Turkmenistan as well as our contractors to the benefit of all our stakeholders."

 

"Finally I am pleased to note that the Board of Directors of Dragon Oil recommends the payment of a full-year maiden dividend in respect of 2010, reflecting the Group's performance, balance sheet strength and its confidence in our future growth potential.

 

 

Glossary/Definitions/Abbreviations

 

2C

Proved and probable contingent gas resources

AGM

Annual General Meeting

bopd

barrels of oil per day

Certification of reserves

Reserves certification based on a seismic survey conducted by an independent reserves auditor

CPF

Central Processing Facility

Dragon Oil / the Group

Dragon Oil plc and its various subsidiary companies

Dual completion

Two pay zones in the same well that produce independent flow paths in the same well

DWT

Dividend Withholding Tax

ENOC

Emirates National Oil Company Limited (ENOC) L.L.C.

EPS

Earnings per share

FEED

Front End Engineering Design

FOB

Free On Board

GTP

Gas Treatment Plant

km

kilometer

mmscfd

million standard cubic feet per day

Overlifts and underlifts

Crude oil overlifts and underlifts arise on differences in quantities between the Group's entitlement production and the production either sold or held as inventory

Platform

Large structure used to house employees and machinery needed to drill wells in a reservoir to extract oil and gas for transportation to shore

Probable reserves (2P)

Reserves based on median estimates, and claim a 50% confidence level of recovery

Proved reserves (1P)

Reserves claimed to have at least a 90% certainty of recovery under existing economic and political conditions, and using existing technology

PSA

Production Sharing Agreement is a contractual arrangement for exploration, development and production of hydrocarbon resources in the Cheleken Contract Area

TCF

Trillion Cubic Feet

US Cents

United States Cents

US$

United States Dollars

Workover

Well intervention involving invasive techniques, such as wireline, coiled tubing or snubbing

 

 

Analyst meeting and conference call details:

 

Dragon Oil will host an analyst meeting and conference call today at 9.30am. Please contact Kate Lehane at Citigate Dewe Rogerson on +44 (0)20 7282 1063 or at kate.lehane@citigatedr.co.uk for further details.

 

A replay of the conference call will be available from around 1pm today until 29 February 2011.

 

Replay numbers:

UK

+44 (0)20 7111 1244

Ireland

+353 (0)1 486 0902

USA

+1 347 366 9565

Replay passcode

1419611#

 

For further information please contact:

 

Investor and analyst enquiries

Dragon Oil plc

Dr Abdul Jaleel Al Khalifa, CEO

Tarun Ohri, Director of Finance

Anna Gavrilova, Investor Relations Officer

Sally Marshak, Investor Relations Officer

On the day of the announcement: +44 20 7647 7804

Thereafter: +971 4 305 3600 and +44 20 7647 7804

Media enquiries

Citigate Dewe Rogerson

Martin Jackson

George Cazenove

+44 (0)20 7638 9571

 

About Dragon Oil

Dragon Oil plc is an international oil and gas development and production company, quoted on the London and Irish Stock exchanges (Ticker symbol: DGO).  Its principal producing asset is in the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan.

 

Dragon Oil (Turkmenistan) Ltd., a wholly owned subsidiary of Dragon Oil plc, holds 100% interest in and is the operator of the Production Sharing Agreement for the Cheleken Contract Area. The operational focus is on the re-development of two oil-producing fields, Dzheitune (Lam) and Dzhygalybeg (Zhdanov).

 

www.dragonoil.com  

 

Disclaimer

This news release may contain forward-looking statements concerning the financial condition and results of operations of Dragon Oil. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. No assurances can be given as to future results, levels of activity and achievements and actual results, levels of activity and achievements may differ materially from those expressed or implied by any forward-looking statements contained in this report. Dragon Oil does not undertake any obligation to update publicly or revise any forward-looking statement as a result of new information, future events or other information.

 

 

DRAGON OIL PLC

 

2010 Full Year Results

 

Message from the Chief Executive Officer

 

Record Financial Year

We had a record year in terms of revenues generated, which at US$780 million were 25% up from the 2009 level. This was mainly due to a combination of increased production and stronger realised crude oil prices with Dated Brent averaging around US$80 per barrel during the year. We have begun 2011 with a very robust rate of production, maintaining our 2010 exit rate of 57,000 bopd on average throughout January. This puts us in a strong position to deliver on the upper end of our production forecast this year.   

 

During 2010, we exported 10.8 million barrels of crude oil via two routes as Dragon Oil transitioned smoothly from the existing marketing arrangements via Neka, Iran to new export arrangements via Baku, Azerbaijan.  In the past, 80-90% of our crude oil was marketed under a swap agreement with Iran and a subsequent three-month extension. Following the expiration of these arrangements in July last year, Dragon Oil was able to put in place quickly a new contract for the marketing of our crude oil through Baku, Azerbaijan fulfilling the strategy of maintaining two export routes. There were no interruptions to our operations while we were undergoing this change. We have extended this contract up to December 2011, ensuring that we have secure and stable marketing arrangements in place for our production in the current year. At the same time we are closely monitoring alternative marketing routes with an eye on commercially attractive options to supplement our current arrangements.

 

Capital allocation in recent years, including c. US$250 million in 2010, has been focused on building and upgrading our infrastructure base. With more spending planned for 2011-2013, including the on-going construction of two new wellhead and production platforms among other projects, we are entering a phase that should deliver significant production growth and accelerated field development.

 

Major Infrastructure Upgrade

The completion of the integrated network comprising the new 30-inch 40 km trunkline, three major interconnecting in-field pipelines and the expanded CPF delivered significant improvements as soon as we commenced the switch over from the two existing 12-inch pipelines. The exit rate for 2010 was 57,013 bopd, while production last December and in January 2011 was almost 10,000 bopd ahead of the average gross production rate for the whole of 2010.

 

We continue to plan ahead and invest in new infrastructure as well as upgrade the existing facilities. Thus, in 2010, we awarded two separate contracts for the construction of two new wellhead and production platforms in the Dzheitune (Lam) and Dzhygalybeg (Zhdanov) Fields, which will mark a total of four new platforms to be installed by Dragon Oil since we became operators in 2000. We are also building a new gathering platform, the Dzheitune (Lam) Block I, in the Western Area of the field and have ordered a new 100-tonne floating crane vessel.

 

Drilling Campaign

The 2010 11-well drilling programme yielded a 5.5% increase in average gross daily production to 47,211 bopd.  Production growth was constrained by infrastructure bottlenecks, which impacted our planned production growth during 2010, but these issues have now been eliminated following the switch over to the new 30-inch trunkline. We employed four rigs last year, on the basis of a combination of full-time and short-term contracts, and will continue to use three of those rigs in 2011; the NIS and Iran Khazar rigs and Rig 40. Moreover, to support our drilling campaign beyond 2011, a new build Super M2 jack-up rig from Yantai Raffles Offshore Ltd is due to be delivered in December this year. This new build jack-up rig is designed to be a more powerful and efficient rig compared to the rigs currently used allowing us to drill deeper and faster.

 

Gas Monetisation and M&A Activity

As part of the independent reserves upgrade assessment at the end of 2010, a portion of gas resources was converted into 1.6 TCF of gas reserves with 1.4 TCF remaining as gas resources. The oil and condensate reserves were upgraded to 639 million barrels of oil. Our current gas production is 120 mmscfd and we are bringing most of this onshore via the new 30-inch trunkline. Virtually all gas is currently flared pending the completion of the compressor station and a connecting pipeline between the station and our CPF; while a small proportion is delivered to Hazar for domestic use to help the local community. As soon as the facilities at the compressor station are completed by the government, we will be in the position to supply unprocessed gas to the Turkmen system and cease gas flaring.

 

In 2010, we engaged with the government on gas monetisation opportunities and we expect these discussions to continue in 2011. We have an open and positive dialogue with the government and we support the country's initiatives in the area of the development and marketing of the country's gas resources.

 

In terms of acquisitions, we looked at a number of potential targets during 2010 and we continue to work towards the objective of portfolio diversification. We have broadened the regions of interest to comprise North and West Africa, the Middle East, Central and South-East Asia while expanding our criteria to consider assets that not only offer development opportunities but also bear an exploration upside.

 

Dividend Policy

I am delighted to report that the Board of Dragon Oil has recommended the payment of a full-year maiden dividend in respect of 2010, which is a testament to the Group's strong financial position and signals the confidence of the Board and senior management team. The Group has significant resources and cash generation abilities enabling us to continue the accelerated development of the Cheleken Contract Area, in tandem with pursuing and funding the acquisition of new assets and commencing the payment of dividends.

 

 

operating and financial review

 

Production

In 2010, average daily production on a working interest basis increased by 5.5% to 47,211 bopd (2009: 44,765 bopd) based on the 11-well drilling programme. Production growth, however, was constrained by infrastructure bottlenecks, which were eliminated once we completed the major infrastructure upgrade at the end of 2010. This consisted of the integrated network of a new 30-inch 40 km trunkline and 14-, 18- and 20-inch inter-field pipelines and the expanded CPF. As a consequence, our exit rate at the end of 2010 was up 14.7% to 57,013 bopd compared to the level seen in 2009.

 

In 2010, the entitlement production was approximately 61% of gross production (2009: 58%). Entitlement barrels are dependent, amongst other factors, on the fiscal terms of the PSA, operating and development expenditure in the period and the realised crude oil price.

 

Marketing

Dragon Oil sold 10.8 million barrels of crude oil in 2010 (2009: 10.5 million barrels). This is 3% higher than the volume sold during the previous year due to increased production and changes in lifting position.

 

In 2010, approximately 60% (2009: 10%) of crude oil was exported via Baku, Azerbaijan; the balance was marketed under the swap agreement with Iran and a subsequent three-month extension, which expired in July 2010. The Group currently exports all of its entitlement barrels through Baku, Azerbaijan.  The terms of the contract are FOB the Aladja Jetty, primarily using the BP-operated BTC (Baku-Tbilisi-Ceyhan) pipeline. The marketing contract is valid up to December 2011.

 

Since the commencement of its PSA for the Cheleken Contract Area, Dragon Oil had marketed 80-90% of its entitlement barrels through a crude oil swap agreement with a subsidiary of the National Iranian Oil Company, Naftiran Company Limited ('NICO') while maintaining flexibility by exporting the balance via an alternate route. The Iranian swap agreement expired on 31 March 2010 and Dragon Oil subsequently entered into a three-month swap contract with NICO, which expired in July 2010.  All operations under the swap arrangements with NICO ceased at that time. Concurrently, Dragon Oil was able to put new marketing arrangements in place to secure the exporting of its crude oil without interruptions.

 

To gain further access to international markets and maintain flexibility in operations, Dragon Oil continues to review alternative routes for exporting its crude oil.

 

The Group was in an overlift position of approximately 0.2 million barrels of crude oil at the end of 2010 (31 December 2009: 0.2 million).

 

Drilling and operations

Dragon Oil completed an 11-well drilling programme during 2010 and the first week of January 2011. The following table summarises the results of this drilling programme, which took place in the Dzheitune (Lam) field:

 

 

Well

 

Rig

Completion date

Depth (metres)

Type of completion

Initial test rate (bopd)

A/142

Iran Khazar

March

3,961

2,103

13/143

Rig 40

March

3,450

2,168

B/141

Astra

April

4,502

1,895

B/145

Astra

June

3,344

1,054

13/144

Rig 40

July

3,434

1,809

28/146

NIS

July

3,200

2,311

28/147

NIS

September

3,400

2,451

B/148

Iran Khazar

October

3,858

2,639

28/149

NIS

October

3,295

4,379

28/151

NIS

December

3,512

2,656

B/150

Iran Khazar

January 2011

3,980

Dual

1,622

 

The workover programme in 2010 included a workover of the Dzheitune (Lam) A/125 well, yielding an incremental production of 562 bopd and a sidetrack of the Dzheitune (Lam) A/129 well, yielding an incremental production of 1,140 bopd. Both operations were performed by the Iran Khazar rig. Moreover, two wells on the Dzheitune (Lam) 13 platform were perforated using wireline operations yielding a combined incremental production of approximately 700 bopd.

 

Dragon Oil continues to employ drilling rigs on the basis of a combination of full-time and short-term contracts depending on their availability and commercial terms. The 2011 drilling programme is based on the use of three rigs:

 

·    Rig 40 will drill two wells from the Dzheitune (Lam) 13 platform extending its successful six-well drilling campaign; the slots for these wells have already been added.

 

·    The platform-based Naftna Industrija Srbije Naftagas ("NIS") rig is currently drilling on the Dzheitune (Lam) 28 platform with the aim of completing up to five wells in 2011. The Group's original plan to drill seven wells using the NIS rig during its contract term has been expanded to include two more wells (nine wells in total) on the Dzheitune (Lam) 28 platform, the slots for which are currently being added.

 

·    Early in 2011, Dragon Oil agreed in principle a two-year extension for the use of the Iran Khazar rig. The extension of the contract enables the rig to continue drilling from the Dzheitune (Lam) B platform and to complete four wells this year. Since the first contract for the employment of this rig by Dragon Oil in the Cheleken Contract Area was signed in 2005, we have successfully completed 23 wells from the Dzheitune (Lam) platforms 21, 28, 10, A and B, as well as a number of workovers by the Iran Khazar rig.

 

The Astra jack-up rig was used in the first half of 2010 on the newly-installed Dzheitune (Lam) B platform. The use of the Astra rig or its replacement remains an option in the future, pending favourable contractual terms and availability.

 

In January 2010, Dragon Oil awarded a contract to Yantai Raffles Offshore Ltd. for the lease and management of a new build Super M2 jack-up rig (the "M2 jack-up rig") in the Cheleken Contract Area. This jack-up rig is being constructed as a self-elevating drilling unit in accordance with international marine construction standards. We anticipate the completion and mobilisation of the M2 jack-up rig to the Cheleken Contract Area in December 2011. Upon delivery, the lease and management contract is expected to commence for an initial duration of five years, with an option to extend it for a further period of up to two years.

 

Infrastructure

2010 was an active year for Dragon Oil in terms of infrastructure projects accomplished and around US$200 million worth of contracts were awarded. We achieved an important landmark with the completion and commissioning of the major infrastructure upgrade, including the new 30-inch trunkline, a number of interconnecting in-field pipelines and the Phase 2 expansion of the CPF.

 

The new 30-inch 40 km trunkline now allows us to bring most of the unprocessed gas onshore together with crude oil as we switch over from the two existing 12-inch pipelines. At the moment, we continue to flare gas pending the completion of the compressor station and a connecting pipeline between the station and our CPF; at the same time we supply a small proportion of gas to Hazar for domestic use. We are awaiting the completion of the facilities, anticipated in 1H 2011, to let us supply unprocessed raw gas to the Turkmen system.

 

The capacity of the CPF has been almost doubled to allow the handling of up to 100,000 barrels of liquids per day with capacity to handle up to 220 mmscfd of gas. The new 30-inch trunkline has a capacity similar to the expanded CPF's and, unlike the existing 12-inch pipelines, has built-in mechanisms to perform pigging operations to clean the trunkline and minimise wax accumulation, especially in winter months.

 

As part of last year's major project to upgrade the infrastructure, three additional inter-field pipelines were constructed in the Dzheitune (Lam) Field: from Platform A to Block II (20-inch), from Platform 28 to Platform A (18-inch) and from Platform B to Platform 28 (14-inch). The use of these new pipelines has allowed us to increase the throughput capacity and will accommodate the future development of the Western area of the Cheleken Contract Area.

 

We are currently putting a new gathering platform into the water, the Dzheitune (Lam) Block I, in the Western Area of the Field. It will replace the existing Block I and act as a gathering station, thus, providing additional throughput capacity for the crude oil flow in this part of the field.

 

The Group is adding a new 100-tonne floating crane vessel to our fleet, which will enhance our offshore operating capabilities. The vessel will be employed to support drilling and infrastructure projects. It is currently under construction with anticipated delivery scheduled for Q4 2011.

 

In 2010, Dragon Oil awarded contracts for the construction of two new wellhead and production platforms, the Dzheitune (Lam) C and Dzhygalybeg (Zhdanov) A, to contractors with considerable experience in the Caspian Sea region. Both of the drilling platforms are designed to support jack-up rigs, while the Dzhygalybeg (Zhdanov) A platform will also be able to support a land rig and will comprise an accommodation facility with a connecting bridge from the drilling platform. Each platform will have up to eight slots for drilling with an option to extend the drilling programmes depending on the results from the first few wells. The designated locations are the Dzheitune (Lam) Field between the Dzheitune (Lam) B and 28 platforms for the Dzheitune (Lam) C platform and the eastern part of the Dzhygalybeg (Zhdanov) Field for the Dzhygalybeg (Zhdanov) A platform. The platforms are due to be completed in late 2011 and early 2012, respectively.

 

Within the framework of a standardisation process that would enhance the Group's operating capabilities, Dragon Oil is initiating a generic FEED study to determine a template for the construction of platforms in the Cheleken Contract area. This template would be utilised to improve and standardise offshore platform design in order to optimise drilling and reduce platform construction costs.

 

Another study is being launched to review the existing throughput capacity of the channel in the harbour area and the Aladja Jetty. Based on the findings of the study, we expect to undertake dredging activities with the aim of enhancing the Group's operational and crude oil loading capacity.

 

Reserves and Resources


As at 31 December 2010

 

As at 31 December 2009

 

Proved and Probable Remaining Recoverable Reserves

Oil and Condensate

million barrels

Gas

TCF

Oil and Condensate

million barrels

Gas

TCF

Gross field reserves to 1st May 2035

639

1.6

617

-

2C Resources





Gross gas contingent resources

-

1.4

-

3.1

 

Based on the results of the recent assessment by an independent energy consultant, the Group has upgraded its reserves to 639 million barrels of oil and condensate at the year-end and 1.6 TCF of gas reserves corresponding to 260 million barrels of oil equivalent. Recognition of gas reserves is based on a plan for development, a reasonable expectation of a market for the expected sales quantities of gas and the availability of infrastructure either in place or planned to be installed. The increase in oil and condensate reserves is due to increased reserves in the Dzheitune (Lam) West area and the additional condensate, which will be stripped from gas once the GTP is constructed and becomes operational.

 

New business opportunities and Yemen participation

In 2010, Dragon Oil's New Ventures Team identified a significant number of potential acquisition assets, which to a certain degree matched the criteria set by the Company, and pursued a variety of options, such as joint ventures, corporate acquisitions or project farm-ins. Although we are yet to deliver on the diversification objective, we continue to look actively for assets, which have the potential to offer both immediate and near-term production and reserves, with the upside of longer-term growth potential through exploration. The Group expanded the regions of interest to comprise North and West Africa, the Middle East, Central Asia (former Soviet Union Republics) and to a lesser degree South-East Asia. While Dragon Oil's expertise lies with developing and operating oil and gas reservoirs offshore, such experience could also be applicable to shallow water offshore and onshore operations. Moreover, we consider targets that besides being development opportunities also bear an exploration upside.

 

The exploration programme in Yemen since acquiring minor interests in three Blocks (R2, Block 35 and 49) in 2007 has not borne success and, consequently, the interests in Block R2 and Block 49 have both been relinquished. Our participation in Block 35 is currently under review.

 

Monetisation of the Gas Resources

The Group is currently producing 120 mmscfd of associated gas, most of which is brought onshore via the new 30-inch trunkline for separation at the CPF; while a small portion is delivered to the neighbouring town of Hazar for local use.

 

Based on the latest certification by an independent energy consultant, the Group's gas reserves are 1.6 TCF with the remaining 1.4 TCF classified as 2C gas contingent resources. The conversion of the portion of gas resources into 1.6 TCF of gas reserves was on the basis of the completion of the infrastructure necessary to bring gas onshore, expansion of the processing capacity and the planned capacity of the GTP.

 

The monetisation of these gas resources is of strategic importance to the Group and during 2010, the Group made significant progress towards this objective with the achievement of the key milestones, including:

 

(i)         The 30-inch 40 km trunkline has been constructed to deliver oil and gas onshore;

(ii)         The Phase 2 expansion of the CPF has been completed with the capacity increased to handle up to 220 mmscfd of gas;and

(iii)        The FEED study for the GTP has been finalised; we are currently looking at optimising costs and will proceed with the plan for construction of the GTP.

 

We will soon be in the position to deliver unprocessed gas to the Turkmen system upon completion of the compressor station and connecting pipe near the CPF. Once the GTP is operational, we will be able to strip the condensate from gas and blend it with our crude oil, thus achieving a better quality crude blend for marketing. Equally important will be the fact that we will be able to process raw gas to various export specifications.

 

In 2010, we engaged with the government on gas monetisation opportunities and in 2011 we expect these discussions to continue. At the same time, Turkmenistan has actively worked on a number of new marketing routes. Although such routes are at different stages of consideration or construction, the strategy to access new markets is a positive step forward for both Turkmenistan and its operators, both state-owned and independent, such as Dragon Oil. We have an open and positive dialogue with the government to overcome short-term market conditions and we support the country's initiatives in the area of the development and marketing of the country's gas resources.

 

Dividend policy

The Board of Directors of Dragon Oil recommends the payment of a full-year maiden dividend of US cents 14 per share in respect of 2010 in recognition of the Group's solid performance, strong financial position and cash generation abilities. Since becoming the operator in the Cheleken Contract Area in 2000, the Group has invested substantially in its infrastructure base and over the last few years has been able to finance the development of the Area from the funds generated by the asset itself. It is our strategy to fund potential acquisitions from existing cash financial resources and debt facilities or, where appropriate, through other options available to the Company. Over the last few years Dragon Oil has generated strong revenues through a combination of substantial production growth and, in certain years, high oil prices. The Board believes these factors enable the Group to continue to fund the organic and non-organic growth strategy as well as make dividend payments. The Board's focus will remain on the Group's growth and, as such, the level of future dividend payments will reflect the Group's then performance, capital requirements and its investment needs and opportunities.

 

The full-year maiden dividend proposed is US cents 14 per share for the year 2010. The dividend will be paid on 27 May 2011 to shareholders on the register as of 3 May 2011. The AGM will be held on 18 May 2011 at the London Hilton.

 

The following is the dividend timetable for the shareholders' information:

21 February 2011: Declaration of final dividend

27 April 2011: Ex-Dividend Date

3 May 2011: Record Date

18 May 2011: AGM

27 May 2011: Dividend Payment Date.

 

The 2010 dividend of US cents 14 per share is a final dividend, which will be paid subject to shareholder approval at the forthcoming AGM to be held on 18 May 2011. In subsequent years, the dividend will be split between an interim and final dividend and paid approximately half-yearly.

 

The dividend will be declared in US dollars, the Group's functional currency. The exchange rate for the pound sterling or euro amounts payable will be determined by reference to the exchange rates applicable to the US dollar on the closest practicable date to the dividend payment date. The closing date for receipt of currency elections is 3 May 2011. By default shareholders (other than shareholders holding their shares within CREST) with registered addresses in the UK will be paid their dividends in pounds sterling. Those with registered addresses in European countries, which have adopted the euro, will be paid in euro. Shareholders with registered addresses in all other countries will be paid in US dollars. Shareholders may, however, elect to be paid their dividends in a currency other than their default currency, and will have a choice of US dollars, euro or pounds sterling provided such election is received by our registrars by the record date for the dividend. As the above arrangements can be inflexible for institutional shareholders, where shares are held in CREST, dividends are automatically paid in US dollars unless a currency election is made. CREST members should use the facility in CREST to make currency elections. Currency elections must be made in respect of entire holdings and partial elections are not permitted.

 

Dividends can be paid directly into a UK bank account to shareholders who elect for their dividend to be paid in pounds sterling and to an Irish bank account where shareholders elect to receive their dividend in euro.  A dividend reinvestment plan is not available under the policy.

 

Currency election and dividend mandate forms are available on Dragon Oil's website www.dragonoil.com.

 

Irish DWT must be deducted from all dividends paid by an Irish resident company, unless a shareholder is entitled to an exemption and has submitted a properly completed exemption form to the Company's Registrar, (by post) Capita Registrars, PO Box 7117, Dublin 2, Ireland (or by hand) Capita Registrars, Unit 5, Manor Street Business Park, Manor Street, Dublin 7, Ireland, by the dividend record date. DWT is deducted at the standard rate of Income Tax (currently 20%). Non-resident shareholders and certain Irish companies, trusts, pension schemes, investment undertakings and charities may be entitled to claim exemption from DWT. Copies of forms applicable to all exemption types may be obtained online from Irish Revenue (www.revenue.ie/en/tax/dwt/forms/index.html).

 

Individuals who are resident in Ireland for tax purposes are not generally entitled to an exemption from Irish DWT.

 

Our People

In 2010, the Group increased its average headcount to 1,104, a 9% increase over the previous year. The Group continued with its objective of strengthening our expertise, cultural diversity and talent through hiring experienced and competent people. 

 

Our motto of "People First" continues to drive our focus on training, empowering and trusting our talented workforce. It also drives our commitment towards the people in the community. The desalination unit and the planned polyclinic are only examples of such efforts.

 

Outlook for 2011-13

The Iran Khazar jack-up rig and the platform-based NIS rig are drilling two development wells in the Dzheitune (Lam) field, B/153 and 28/152, respectively. These two wells are due to be put into production around the end of Q1 2011.

 

In 2011, we expect the Iran Khazar rig to drill and complete four wells on the Dzheitune (Lam) B platform. The NIS rig will continue to drill from the Dzheitune (Lam) 28 platform and is anticipated to complete up to five wells under the optimised drilling programme. Rig 40 will be re-deployed on the Dzheitune (Lam) 13 platform with the aim of drilling and completing two wells.

 

In total, Dragon Oil plans to complete 11 development wells in 2011.

 

Our medium-term business plan, for the period 2011 to 2013, envisages the completion of up to 40 new wells, including five appraisal wells, to support a target rate of production growth averaging 10% to 15% per annum. The forecast oil infrastructure spend is expected to be approximately US$600-700 million over the period. The level of capital expenditure is subject to approval of projects under the PSA and the availability of contractors in the Caspian Sea region.

 

For gas development, we envisage additional capital expenditure for the 2011-13 period in the range of US$150-170 million for the onshore GTP and associated facilities. Commencement of this project is dependent on market conditions and the conclusion of the gas sales agreement.

 

Financial Summary

 

Dragon Oil has strengthened its balance sheet further in the last 12 months with a growth of 23% in net assets to US$2 billion. This increase mainly comprises of US$267 million in non-current assets and US$199 million in cash and cash equivalents and term deposits. The Group has no debt and is able to finance its operations with net cash generated from its operations in Turkmenistan.

 

A 25% increase in revenue to US$780 million and a 55% increase in operating profit to US$488 million are attributed largely to increased realised oil prices in 2010, increased production and a movement in the lifting position. Earnings per share were 49% higher than in 2009 and net cash from operations was up 19% over 2009. The year 2010 saw an increase of 23% in net assets represented largely by higher expenditure in oil and gas interests and an increased cash balance at the year-end. 

 

Key financial data  

US$ million (unless stated)

2010

2009

Change

Revenue 

780.4

623.5

25%

Cost of Sales 

(264.7)

(282.3)

(6%)

Gross Profit

515.7

341.2

51%

Operating profit 

487.7

314.4

55%

Profit for the year 

386.1

259.0

49%

Earnings per share, basic (US Cents)

74.9

50.3

49%

Earnings per share, diluted (US Cents)

74.7

50.2

49%

Net assets 

2,092.9

1,703.2

23%

Net cash from operations

594.7

500.3

19%

Net cash used in investing activities 

(721.9)

(682.3)

6%

Debt

0.0

0.0

nil

 

Income Statement

Revenue

Gross production levels in 2010 averaged 47,211 bopd (2009: 44,765 bopd) on a working interest basis. The entitlement production was approximately 61% (2009: 58%) of the gross production in 2010. The Group's share of entitlement production is determined by reference to cost oil and profit oil in accordance with the terms of the PSA. The entitlement barrels continue to be determined by, amongst other factors, the level of development expenditure and the realised oil prices.

 

Revenue for the year was US$780 million compared with US$623 million in 2009. The increase of 25% over the previous year is primarily attributable to a 17% increase in the average realised price and a 3% increase in the volume of crude oil sold over the previous year. The average realised price during the year was US$72.3 per barrel (2009: US$61.6 per barrel). Realised oil prices were at a 9% discount to Brent during the year (2009: at par with Brent). The increase in sales volumes is attributed primarily to increased entitlement and movement in lifting position.

 

The PSA includes provisions such that parties to the agreement may not lift their respective crude oil entitlements in full and as such underlifts or overlifts of crude oil may occur at period-ends. At the year-end, the Group was in an overlift position of approximately 0.2 million barrels that is recognised and measured at market value (31 December 2009: overlift of 0.2 million barrels).  

 

Operating profit

The Group generated an operating profit of US$488 million (2009: US$314 million), 55% higher than in the previous year.

 

Cost of Sales comprises operating and production costs and the depletion charge. The Group's cost of sales was US$265 million in 2010 compared to US$282 million in 2009, a decrease of about 6%. The decrease is primarily due to a movement in the lifting position and lower marketing costs, offset by a lower crude oil inventory at the year-end. Lower marketing costs in 2010 are due to the higher volume, of about 60% (2009: 10%), of crude oil exported on FOB basis ex-Aladja Jetty, with the balance marketed under the swap agreement with Iran and its subsequent three-month extension, which expired in July 2010.

 

The depletion and depreciation charge during the year was marginally lower by about 1% at US$188 million (2009: US$189 million) primarily due to the conversion of a portion of gas resources into reserves and recognition of additional oil and gas reserves assessed by the independent energy consultant, offset by the incremental upward revision in estimates of field development costs and the increased entitlement barrels during the year.

 

Administrative expenses (net of other income) at US$28 million were higher by about 4% (2009: US$27 million), due primarily to an increase in Corporate Social Responsibility activities and head office costs during 2010, which were comparable with one-off charges related to the ENOC approach, investigations into the irregularities and expenses related to proposed corporate re-structuring in 2009.

 

Profit for the year

Profit for the year was US$386 million (2009: US$259 million), 49% higher than the previous year's level. The profit includes finance income of US$27 million (2009: US$31 million) and a higher taxation charge of US$129 million (2009: US$86 million). Finance income decreased in 2010 despite the higher cash and cash equivalents and term deposits maintained during the year due to lower interest yields.

 

During 2008, the effective tax rate applicable to the Group's operations in Turkmenistan was increased by 5% to 25% by the Hydrocarbon Resources Law of 2008.  The Group has continued to apply this rate in determining its tax liabilities as at 31 December 2010.  The Group is in discussions with the authorities in Turkmenistan about the applicability of this rate to periods prior to 2008, but it does not believe that these prior periods are affected by this increase. A provision has been made in respect of the additional tax that could become payable if the increased tax rate were applied to prior periods based on the expected value approach.

 

Basic EPS of 74.9 US Cents for the year were 49% higher than the previous year (2009: 50.3 US Cents).

 

Balance Sheet

Investments in property, plant and equipment were higher by US$268 million primarily due to capital expenditure of US$460 million (2009: US$317 million) incurred on oil and gas interests, offset mainly by the depletion and depreciation charge during the year. The expenditure during the year was on drilling and infrastructure projects in Turkmenistan.  Of the total capital expenditure on oil and gas interests for 2009, 55% was attributable to infrastructure (2009: 50%). The infrastructure spend during the year included the completion of the 30-inch trunkline and associated inter-field pipelines, as well as the Phase 2 expansion of the CPF and the construction of the gathering station and two wellhead platforms.

 

Current Assets and Liabilities

Current assets rose by US$244 million primarily due to an increase of US$325 million in term deposits, US$41 million for trade receivables and US$4 million for inventories, which were partly offset by a decrease in cash and cash equivalents. The cash and cash equivalents and term deposits at the year-end were US$1,337 million, including US$174 million held for abandonment and decommissioning activities. Amounts of US$1,195 million are held in term deposits of maturities greater than three months.

 

Current liabilities rose by US$127 million due to increases of US$47 million in trade and other payables, US$47 million for abandonment and decommissioning liability owing to increased production and US$37 million towards current tax liability, offset by the movement of US$4 million in overlift creditors.

 

Cash flows

Net cash generated from operations during the year increased by US$94 million to US$595 million (2009: US$500 million). The increase was primarily attributable to the higher sales price realised during the year for the sale of crude oil and the change in the working capital position. Cash used in investing activities was US$722 million (2009: US$682 million), comprising capital expenditure of US$424 million (2009: US$269 million) and placement of term deposits of US$325 million (2009: US$444 million), offset by interest received on cash and cash equivalents and term deposits of US$27 million (2009: US$31 million).  Cash generated by financing activities was US$2 million (2009: US$0.05 million) on account of proceeds from the issue of share capital resulting from the exercise of share options. 

 

 

Group balance sheet

As at 31 December

 



2010

2009



US$'000

US$'000

ASSETS




Non-current assets




Property, plant and equipment


1,176,361

908,310

Intangible assets


-

1,054



-------------------

-------------------



1,176,361

909,364



-------------------

-------------------

Current assets




Inventories


47,035

43,379

Trade and other receivables


98,273

57,264

Term deposits


1,195,148

870,468

Cash and cash equivalents


141,457

267,110



-------------------

-------------------



1,481,913

1,238,221



-------------------

-------------------

Total assets


2,658,274

2,147,585



=========

=========





EQUITY




Capital and reserves attributable to the Company's equity shareholders




Share capital


80,774

80,687

Share premium


230,296

228,809

Capital redemption reserve


77,150

77,150

Other reserve


4,074

3,138

Retained earnings


1,700,652

1,313,439



-------------------

-------------------

Total equity


2,092,946

1,703,223



-------------------

-------------------

LIABILITIES




Non-current liabilities




Trade and other payables


-

20,158

Deferred income tax liabilities 


83,231

68,905



-------------------

-------------------



83,231

89,063



-------------------

-------------------

Current liabilities




Trade and other payables


340,023

250,033

Current income tax liability


142,074

105,266



-------------------

-------------------



482,097

355,299



-------------------

-------------------

Total liabilities


565,328

444,362



-------------------

-------------------

Total equity and liabilities


2,658,274

2,147,585



==========

=========

 

 

 

Group income statement

Year ended 31 December

 



2010

2009



US$'000

US$'000





Revenue


780,409

623,480





Cost of sales


(264,683)

(282,277)



---------------

---------------

Gross profit


515,726

341,203





Administrative expenses


(28,206)

(27,018)

Other income


203

260



---------------

----------------





Operating profit


487,723

314,445





Finance income


26,952

30,553



---------------

---------------

Profit before income tax


514,675

344,998





Income tax expense


(128,592)

(85,971)



---------------

---------------

Profit attributable to equity holders of the Company


386,083

259,027



========

========

Earnings per share attributable to equity holders of the Company




Basic


74.94c

50.30c

Diluted


74.69c

50.20c



========

========

 

Group statement of comprehensive income

Year ended 31 December

 


2010

2009


US$'000

US$'000




Profit attributable to equity holders of the Company

386,083

259,027


-------------------

-------------------

Total comprehensive income for the year

386,083

259,027


========

========

 

 

 

Group cash flow statement

Year ended 31 December

 



2010

2009



US$'000

US$'000





Cash generated from operating activities


672,165

593,287

Income tax paid


(77,458)

(92,982)



-----------------

-----------------

Net cash generated from operating activities


594,707

500,305



------------------

-----------------

Cash flows from investing activities




Additions to property, plant and equipment


(424,103)

(268,938)

Additions to intangible assets


(103)

(107)

Interest received on bank deposits


26,952

30,553

Amounts placed on term deposits (with original maturities greater than three months)


 

(324,680)

 

(443,801)



------------------

-----------------

Net cash used in investing activities


(721,934)

(682,293)



------------------

-----------------

Cash flows from financing activities




Proceeds from issue of share capital


1,574

47



------------------

-----------------

Cash generated from financing activities


1,574

47



------------------

-----------------

Net decrease in cash and cash equivalents


(125,653)

(181,941)





Cash and cash equivalents at beginning of year


267,110

449,051



------------------

-----------------

Cash and cash equivalents at end of year


141,457

267,110



========

========

 

 

 

Statement of changes in equity

Group

 

 

 


 

Share

capital

 

Share

premium

Capital

redemption

reserve

 

Other

reserve

 

Retained

earnings

 

 

Total



US$'000

US$'000

US$'000

US$'000

US$'000

US$'000




 





 








At 1 January 2009


80,685

228,764

77,150

1,689

1,054,060

1,442,348

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Total comprehensive income for the year


-

-

-

-

259,027

259,027

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Shares issued during the year


2

45

-

-

-

47

Employee share option scheme:








- value of services provided


-

-

-

1,801

-

1,801

Transfer on exercise of share options


-

-

-

(352)

352

-

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Total transactions with owners


2

45

-

1,449

352

1,848

 


----------------

------------------

----------------

--------------

---------------------

---------------------

At 31 December 2009


80,687

228,809

77,150

3,138

1,313,439

1,703,223

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Total comprehensive income for the year


-

-

-

-

386,083

386,083

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Shares issued during the year


87

1,487

-

-

-

1,574

Employee share option scheme:








- value of services provided


-

-

-

2,066

-

2,066

Transfer on exercise/forfeiture of share options


 

-

 

-

 

-

 

(1,130)

 

1,130

 

-

 


----------------

------------------

----------------

--------------

---------------------

---------------------

Total transactions with owners


87

1,487

-

936

1,130

3,640

 


----------------

-------------------

----------------

--------------

-----------------------

---------------------

At 31 December 2010


80,774

230,296

77,150

4,074

1,700,652

2,092,946



=======

=========

=======

======

==========

=========

 

 

 

1       General information

 

Dragon Oil plc ("the Company") and its subsidiaries (together "the Group") are engaged in upstream oil and gas exploration, development and production activities primarily in Turkmenistan under a PSA. The production of crude oil is shared between the Group and the Government of Turkmenistan as determined in accordance with the fiscal terms as contained in the PSA.

 

The Company is incorporated in Ireland. The Group headquarters is based in Dubai, United Arab Emirates ("UAE").

 

The Company's ordinary shares have a primary listing on the Irish Stock Exchange and a premium listing on the London Stock Exchange.

 

These financial statements have been approved for issue by the Board of Directors on 21 February 2011.

 

2       Basis of preparation

 

In accordance with EU Regulations, the Group is required to present its annual consolidated financial statements for the year ended 31 December 2010 in accordance with EU adopted International Financial Reporting Standards ("IFRS"), International Financial Reporting Interpretations Committee ("IFRIC") interpretations and those parts of the Irish Companies Act, 1963 to 2009 applicable to companies reporting under IFRS and Article 4 of the International Accounting Standards ("IAS") Regulation.

 

This financial information has been extracted from the consolidated financial statements for the year ended 31 December 2010 approved by the Board of Directors on 21 February 2011. The financial information comprises the Group balance sheets as of 31 December 2010 and 31 December 2009 and related Group income statements, cash flows, statement of changes in equity and selected notes for the twelve months then ended, of Dragon Oil plc. This financial information has been prepared under the historical cost convention except for the measurement at fair value of share options and overlift payables.

 

The preliminary results for the year ended 31 December 2010 have been prepared in accordance with the Listing Rules of the Irish Stock Exchange.

 

The preparation of financial information in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Group financial information are disclosed in Note 4.

 

3       Accounting policies

 

The accounting policies used are consistent with those set out in the audited financial statements for the year ended 31 December 2009, which are available on the Company's website, www.dragonoil.com.

 

4       Critical accounting judgements and estimation uncertainties

 

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities as well as contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during a reporting period. The resulting accounting estimates will, by definition, seldom equal the related actual results.

 

The critical accounting judgements and estimates used in the preparation of financial statements that could result in material adjustments to the income statement and the carrying amounts of assets and liabilities are discussed below:

 

Carrying value of development and production assets

 

In arriving at the carrying value of the Group's development and production assets, significant assumptions in respect of the depletion charge have been made. These significant assumptions include estimates of oil and gas reserves, future oil and gas prices, finalisation of the gas sales agreement and future development costs including the cost of drilling, infrastructure facilities and other capital and operating costs.

 

The Group's estimated long-term view of oil prices is US$70 per barrel and netback prices for gas is US$3.5 per Mscf, based on the current outlook.

 

If the estimate of the long-term oil price had been US$20 per barrel higher at US$90 from 1 January 2010 and the netback price of gas had been US$1 per Mscf higher at US$4.50 from 1 July 2010, the reserves attributable to the Group would decrease, with a consequent increase in the depletion charge of US$13.4 million for the year.

 

If the estimate of the long-term oil price had been US$20 per barrel lower at US$50 from 1 January 2010 and the netback price of gas had been US$1 per Mscf lower at US$2.50 from 1 July 2010, the reserves attributable to the Group would increase, with a consequent decrease in the depletion charge of US$21.9 million.

 

The depletion computation assumes the continued development of the field to extract the assessed oil and gas reserves and the required underlying capital expenditure to achieve the same. It also assumes that the PSA, which is valid up to 2025, will be extended on similar terms up to 2035 under an exclusive right to negotiate for an extension period of not less than 10 years, provided for in the PSA.

 

5       Segment information

 

The Group is managed as a single business unit and the financial performance is reported in the internal reporting provided to the Chief Operating Decision-maker ("CODM"). The Board of Directors ("BOD"), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the CODM that makes strategic decisions.

 

The financial information reviewed by the CODM is based on the IFRS financial information for the Group.

 

6       Dividend distribution

 At a meeting held on 21 February 2011, the board of directors' of the Company have proposed a final dividend of USc14 per share (2009: nil) be paid to the shareholders in respect of the full year 2010. The total dividend to be paid is US$72.2 million (2009: nil). In accordance with the accounting policy under IFRS set out in note 2.19, this dividend has not been included as a liability in these financial statements. The proposed final dividend is subject to approval by shareholders at the Annual General Meeting.

 

7       Earnings per share

 


2010

US$'000

2009

US$'000




Profit attributable to equity holders of the Company

386,083

259,027


---------------

---------------





Number '000

Number '000

Weighted average number of shares:






Basic

515,210

514,982

Assumed conversion of potential dilutive share options

1,693

957


---------------

---------------

Diluted

516,903

515,939


---------------

---------------

Earnings per share attributable to equity holders of the Company:



Basic

74.94c

50.30c

Diluted

74.69c

50.20c

 

Basic earnings per share is calculated by dividing the net profit attributable to equity shareholders of the Company by the weighted average number of ordinary shares in issue during the year.

 

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potential dilutive options over ordinary shares.

 

8       Cash generated from operating activities

 



2010

2009



US$'000

US$'000

Group








Profit before income tax


514,675

344,998

Adjustments for:




 - Depletion and depreciation


188,476

188,558

 - Crude oil underlifts


-

22,785

 - Crude oil overlifts


(4,227)

16,907

- Write-off of property, plant and equipment


3,088

-

- Employee share options - value of services provided


 

2,066

 

1,801

 - Write-off of intangible assets


1,157

-

 - Interest on bank deposits


(26,952)

(30,553)



---------------

---------------

Operating cash flow before changes in working capital


678,283

544,496





Changes in working capital:




 - Inventories


(3,656)

13,206

 - Trade and other receivables


(41,009)

(21,069)

 - Trade and other payables


38,547

56,654



---------------

---------------

Cash generated from operating activities


672,165

593,287

 

 


========

========

9          Statutory Accounts


This financial information is not the statutory accounts of the Company and the Group, a copy of which is required to be annexed to the Company's annual return to the Companies Registration Office in Ireland.  A copy of the statutory accounts in respect of the year ended 31 December 2010 will be annexed to the Company's annual return for 2010. Consistent with prior years, the full financial statements for the year ended 31 December 2010 and the audit report thereon will be circulated to shareholders at least 20 working days before the AGM. A copy of the statutory accounts required to be annexed to the Company's annual return in respect of the year ended 31 December 2009 has been annexed to the Company's annual return for 2009 to the Companies Registration Office.

 

10       Further information is available on the Company's website, www.dragonoil.com.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR TTMRTMBBTBIB